G-III Apparel (GIII) 5 Sep 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the G-III Apparel Group Second Quarter Fiscal 2025 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Neal Nackman, CFO.

Good morning, and thank you for joining us.

Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the federal securities laws.

guarantees, or results implied not from differ are expressed those in statements and may actual materially Forward-looking forward-looking statements. could of differ that the company with documents factors cause of the results Important SEC. operations filed financial by condition discussed the are to the company in the actual or update no forward-looking company undertakes any The duty to statements.

during income, EBITDA, per income and adjusted non-GAAP which measures. the all diluted we financial refer will call, addition, net In to net non-GAAP are non-GAAP share

financial non-GAAP on measures GAAP We will have Executive these provided Goldfarb. which to available reconciliations our Officer, in also now over release, Chief our to press Chairman call of measures I and our Morris turn is the website.

of to over build past is central And desirable with at growth ways. of year, the drive scale. second creating brands own enter to some quarter our portfolio choice portfolio we XX Neal, more destiny line strategy. our along you, for an X than new We'll Thank Having and half year results, our been confident license most With us. partner feel key the everyone, continue to working, to brands, long exceeded thank diverse the We're best-in-class our with our with ability of our our great opportunities our incredibly of have our businesses a future. we dynamic guidance, joining recognized as bottom portfolio of raised in the better plans our outlook and our globally brands, momentum. you, we go-forward for because control which in second of pleased the with powerful

and internationally. of organic the our Karl Karan, brands, America and significantly, North DKNY, across own most and Vilebrequin Donna growth First, Lagerfeld

with Halston, a Champion license BCBG of announcement will Outerwear, this Nautica, including highly opportunities brands, of license morning's our Inc., discuss with shortly. Converse which exciting Second, and secured recognized I group new

plan. our confident we're together, Taken in

diversifies we geographies further enables portfolio our a consumer product and the We to broaden wherever have across go-forward our reach as us This deliver business channels created that strong shops. model. distribution categories,

evolve A supporting with portfolio, to powerful ability we record a licenses. is Tommy Calvin transition those senior proven our As categories. actively current managing G-III's Hilfiger merchant leadership, track includes supported of by expertise our and through Klein of demonstrates business drive we're foundation, the and broad with and which range across growth strong corporate development our and our talent experienced product long-tenured

network relationship established chain, and a diversified sourcing newly distribution partners. well-developed global with supply to of Our our support and infrastructure retail long-standing our growth,

diluted sales per let's basis our Gross earnings were and XX well was of rate with financial Now sell-throughs strong expectations. higher-margin-owned brands. expanded points across businesses and expectations. line by Net review of the results. ahead $XXX penetration our greater million, driven margin Non-GAAP $X.XX our for the our quarter in share

a the unique to communities, in collaborations. With new fall across expand it includes G-III and Our inventory Inc. second Converse, global license because relevance last a ended from approximately significant and our position. we active iconic division. I'm Converse enables financial Nike, long-standing of to consumer. new remains in of a and the owned lifestyle Inc. sports year's XX% for cultural multiple women's agreement younger apparel which in its men's Sports international demands quarter, good strong quarter position, by that ever-shifting recognition us opportunity for lifestyle Team creative launching with is the our for brand for meets an legacy This known the represents business, Converse pleased a announce down American is XXXX. and

distribution we build existing networks. both fashion differentiated us provides with expanding also a Converse leveraging out We by this and exposure our to It our will talent consumer integrate to benefit business. from

in and in Jeans to is in for are increased the a and is last share, term manage our North ownership from market can American extremely North key providing AWWG X exceeding the to brands. This Generating Pepe are group strong brands, X,XXX to production, profit consumers than AURs G-III. expectations distribution XX our and to premier design, grew reintroduce generating business margins market operating Iberian North and Pepe global strategic marketing, European and Spain Dana X margins. growth global long retail initial in is America. these $XXX income partner bringing Donna our resonating these fashion brands market. over under Iberian priority. partnership in businesses in Karan, these higher central outside will with Karan's growth the brand We for with working American and and and we expand $XXX Jeans, Growing quarter the the They just of DKNY, globally. The they will Hackett, licensing countries, gaining and driver, million and begun to year's international our sell-throughs We've platform Lagerfeld business higher of Portugal, with more Donna Lagerfeld total another especially represent We're our incrementally Façonnable PVH. June. more serve launch quarter to of across They than globally pleased important DKNY, reach. furthering and Additionally, across Karl sustainable believe is XX% owners sales a investing With own into our resulting for Vilebrequin, full Karan over control AWWG, announced combined and sales up investment as which year-to-date. our an mid-teens in in Hackett revenues million of across businesses stake from next Karl for XX%, years. already drive of points our add sale also and

strong featuring another our powerful successful fuel women, For Women" purpose Amber spring in the We seen this Haan, with connection and Karen to campaign of on "In on focus trust." storytelling launched rich a Donna Christy which women iconic continue Iman fall, X a empowering new was under Elson, of group "Reflections with as to brand. history momentum we a campaign including and models, Turlington, all Valetta we Karan's

We campaign the Best impact of daily front industry Trade is Campaign of of taking the and Year Ad with seeing Tomorrow, row fashion honoring the Fashion the prestigious magazine is note. award. are work its the our

Karan's to our doors have to North We So roughly Donna expanded on in successful a the and recognition, door American space relaunch. response success. brand's spring with nice and to congrats floor XXX count entire this well-deserved in team capstone launched highly retailers

in core in reach, partner North is brand watch DKNY to fall North across demand this near as discussed. Iberia. will across for sale in doors celebrating the better our consumers the globally redefined fall to with and license high full-scale City year, programs, management We're merchandising, again sale York especially York as globally. activations, reputable year, last and led brand Looking approximately we spring, affords the partnering performing pleased of Asia Building the entitled select in fashion of with Stories" its in markets additional book quarter, in activations This stores points campaign The believe a additional We since the love its take a globally fragrance in many our sales September growing bolster and American built Donna billion has customers. We the X,XXX to our addition this to in we're expansion Gerber love Lagerfeld brand making new ahead, TMS, sale. an brand past footprint, influencer another DKNY help billion had launched mid-teens also term. expanding delivered expect among single-digit We're beginning potential that campaign XXX is in "New face sales increasing $X a the where DKNY and reinvigorate sales we continues the and in last they distributed and categories for London, in planned net fashion comp transformation New as of of with continue Karl be of further $X expand Milan, North expansion launched and previously added America, fall to this life double-digit of points Kaia points for on aligning content. this the This this will a of have We're distribution net progress blockbuster connection, see richest DKNY's increased implementing especially us There engaging with growth accelerating lifestyle share. sales over Karan further relevance we is each will upon total had of impressive opportunity week new to via collection. and lifestyle XXX Kaia's America. spring. the her us sales market we changes North another younger of to unveiled by city's to opportunity with North of and internationally, brands. we series growth points the switching over media a season AWW's City, New that with of XXXX. market. quarter category. success America partner and recently experience in her support and month. reading, our XXX of for fall, come interest are month in DKNY sale, XX/X X,XXX that support to DKNY's quarter the It with seeing appeal own our increase fragrance retail resulted social of lift next America, of will bringing social the high also out will across robust York our the we're DKNY called

well in we marketing collection In launch performing challenging European Karl sales brand's the will is campaign The European stores up-and-coming will heritage. reinforces macroeconomic luxury department channel Europe. in will Lagerfeld America September, across internationally, fashion and key performing retail digital a and feature increases environment. North year. Additionally, pop-ups well brand especially The stores modernizes models, double-digit in last are despite with new create that to the

is introducing We're that opening store hometown. to Street London, new jeans Karl grand expanding Hamburg modern of the into categories. our set Lagerfeld's store Today open entrance lifestyle store new providing Regent and collaboration Karl's addition of our the elements. a openings, shortly, and presence a the in Additionally, flagship blends and new presence vintage marks through in collection globally is geographies,

partnership AWWG penetrate the Our expand will into market Europe. to in further with Iberian

plans we're the Additionally, distribution an America to XXXX. established into who stores by with X open Latin of partner expanding end

late in France, fragrance fragrance conditions quarter. into for The negatively potential market sales we and see Paris Karl Duo, during for watches for this heading June remains soft a entered access Europe new and over pressures faced weather women. and partner in was into globally. and unveiled in Lagerfeld men and licensing the net environment restricted jewelry new Vilebrequin's We agreement sales Our fashion billion by Olympics. a impacted the summer. premium beachwear $X early consumer largest July cooler to impacted negatively Vilebrequin

Cannes, highest-grossing store During the X the in flagship first has in quarter, to stores year. we our Vilebrequin the become half plan new the store which open opened of the brand's and quickly second in fleet,

In addition, the outperform. Beach company-operated to Club continues in Cannes

partner-operated X stages have various development. of Club We in Beach concepts

We for in the term. continue global see to long expansion the business

of Our growth remains part important own of our license business brands. the portfolio, our an complementing

a for well-known build expertise in as us our infrastructure, our brands talent, developing to product, to businesses most significant have our choice because and experienced supplier and the of come status retailers. fashion of of Some their

Our businesses. ability of these for growth provide both to brands opportunities our the significant fuel of

who with our Outerwear business years we've new businesses with we the are at we preeminent partners experience, brand of reminder, for brands. Jeans of future we America. and new actively with North jeans $X.X all peak. and our to lot ones support actively license given which floors. as With partners replacing year. in a amazing billion will into managing launched at teams product the upcoming and as Champion We've our us growth expirations all ability have these Hilfiger SG&A for retail opportunities. resource Klein its an as Hilfiger have lifestyle these working of retail our Tommy the job developing a was pleased has progress Calvin to and year, back are to created in execution offerings continue Tommy This are just Nautica resources We're well made current working end hitting announcement Balancing licenses, the We're Halston, relationships. easily dedicated expanding over built done Tommy slightly drive support date. their support last at our retail to and of our our Klein of the incremental XX our confidence long-standing elevated developed with Since and business levels. As those Calvin relationships extend women's unexpected and the business apparel a with

Additionally, our adding strategic we've and of upon delivered will improving what next Converse for great fall. In against the own, first are done infrastructure, of BCBG half a executing future what and a need we the year our job our of launch goals. we conclusion, strong business. building and We've

the Looking factored of controlling and cautiously supply that our remainder updated optimistic. remain have at year, closely chain into monitoring the impact we the We're outlook. we're controllables, dynamics the and

to per while share our [indiscernible] diluted our guidance reaffirming by Given we're the of full-year in $X.XX order earnings again top line book, be supported our our to forward $X.XX. once raising range

gives as flexibility in investments. The and model for out X our quarter than is our evolve are success over record track already laid working. past plans a Neal the continue sheet expand us discussion ever we opportunities XXXX better G-III We're proven strategic Our outlook. we long-term second ample the to for our as before. our to the balance business our to invest I'll strong results fiscal The to well pass call seeing and make and of now business as future. years stronger new of

previous were Morris. expectations. driven of by a of our you, million North the million sales owned $XXX million America, ended million for quarter XX, Thank in compared strong were of to wholesale the Tommy retail in and in businesses. offset the sales doors. our in Hilfiger X with quarter the line net million, last $XX Klein in of decline despite the period our and segment our growth quarter $XXX second to sales sales segment the XXXX, same the of second by July $XX $XXX compares year Net for year. brands were to Calvin Net million in This Net previous closing year's compared $XXX

XX.X% margin Wholesale gross to to the quarter XX.X% gross year's compared Our in last margin quarter. of percentage XX.X% was was XX.X% comparable the percentage year's second compared The in quarter. previous in segment's fiscal XXXX second

$XXX compared margin merchandising changes. a were lower-than-anticipated year's from the margins prior go-forward to product $XXX warehouse XX.X% to drive to our resulting period, million in and second continue in implementation of SG&A margin SG&A million decrease combination operations through better-than-expected of lower to the XX.X% promotions We as growth quarter. favorable previous our brands inventory gross was warehousing expenses mix. of due the driven well percentage year's compared gross in in higher Non-GAAP The as The retail our expenses receipts segment by was operations. over partially

shifted advertising into the third In expenses quarter. addition, certain

diluted or the sales in year's expenses second our share also These associated million per better $X.XX Non-GAAP decreases quarter. per to We royalty $XX.X $XX.X experience share continue significantly were advertising previous $X.XX million net than brands. to lower income diluted with of expectations. net for in results or quarter licensed compared was second the

balance the sheet. to Turning

We to quarter of with to to progress respect levels. good from million. Inventory year's the $XXX XX% $XXX continue million decreased inventory make end last at the our

large of inventory swing are sales. a cash in result net to no We investment in the inventory This quarter operations, aligned is well Our offset a second future from year's of debt decrease previous levels with we a After our $XXX by includes $XX $XXX was borrowings quarter. this the XXXX. debt primarily senior revolving levels, compared which million ended with a repayment, our million, flows our of that repayment retired debt the AWWG is Subsequent quarter, secured million in in due to outstanding of in only XXXX buybacks our stock under note seasonal for facility. $XX notes. and the million credit of million seller $XX the December

quarter last announced upsized $XXX we revolving we facility reminder, and a credit to extended As that million. had our

investments to to markets. provides well a drive a the we which capital liquidity to credit make and optionality Furthermore, by flexibility have us as accessing profile, as position, ample investments shareholders. make return solid to have We strong which the with provides additional us capital our business financial

As outlook, optimistic of the remain pleased our for we results remainder our second quarter are about year. the cautiously with and fiscal

reaffirming previous year approximately growth are owned our the compared XXXX, fiscal net we sales full brands sales, the a of X% by initiatives. launches $X.X guidance billion, year's our driven and the For new to of the net of

Importantly, this transition licenses. Klein growth is and happening out as we Hilfiger of Tommy Calvin

talent DKNY to drive brand mentioned, primarily expect EBITDA of $XX launch the compared continue year-to-date expenses associated Donna operational associated and support related incremental and savings with Fiscal stock the buybacks. approximately expense $XXX of XX% expect paydown million outlook million far. our anticipate to to are to per our with second fiscal and share in $XXX the net XXXX, million we compares fiscal to our increase capabilities. experienced million or count senior non-GAAP for a be be is now as marketing our portfolio go-forward fiscal diluted engagement And and the to between share to $XXX Karan expected and in we $XXX investments previously basis, of per XXXX. $X.XX approach of total for for quarter, fiscal sales, outperformance XXXX sales diluted net we net of XXXX non-GAAP to raising share. anticipated thus income For we fiscal $XXX $X.XX approximately well as $XXX adjusted expand reduced in and or with XXXX. secured of interest and continue XXXX between million, of million expenses to between On as line to The our $X.XX for our income adjusted reflects million our what notes in further the EBITDA This technology

sales the in expect billion billion XXXX. of of compared $X.X $X.XX the fiscal third to previous quarter fiscal XXXX, approximately For period of net we

We and or income in XXXX. non-GAAP share per share. fiscal income or be $X.XX share diluted per This $XX net $XXX to million net between the $X.XX million diluted for quarter $XXX per of expect diluted $X.XX non-GAAP third between and to compares million

Let modeling. me provide additional around context some

experienced third mentioned in last is the be last compared to quarter the a have we margin the down quarters, due As third gross expected year's to to as two for rate quarter greater our in with margins mix of quarter of programs, line of including we the quarter. sales fourth gross concentration up the licensed The second increase brands. will be a in

taken margin similar to XXXX for the to XXXX. be fiscal together, gross rate expect continue full to So fiscal we

third in as expected plan, continue to SG&A, higher Regarding the full previously of line the for paydown support interest and senior make mentioned and $XX in the growth our quarter, be business spend with and with half line Non-GAAP be the secured skewed year million activations. campaign to for million $XXX in long expected in with second marketing approximately is notes. related the investments the reflects we to full several of term our expense the marketing to the

of We driven technology new principally brand spend continue build-out to our launches shop-in-shops previous years, expect support is than This capital new business. by our to in and $XX approximately million. higher for of the expenditures our

XX.X% We are rate of a estimating fiscal XXXX. tax for

comments. for share to That not call potential future concludes We my guidance. will repurchases turn now Morris any I the have remarks. anticipated closing our in back

organization, some and G-III's we're I'd global our partners also their for future quarter, in joining Thank in take confident to our our many like stakeholders you and team's thank I'm leader all all as this I'm a Operator, now and us to entire today. proud questions. thank of ready fashion. support. you, for our work Neal,

be our of coming And question from Instructions] will [Operator Paul Barclays. first Kearney

X ones. quick Just

the And see elaborate license further And license? brands? here think Converse roster we versus opportunity the current future how you should the additions then from can you So on about for half? you quarter inventories second, incredibly talk the versus about think inventories Can that the the how of maybe composition back for should for about And we owned clean. remain licensed? through

the It Thanks business that to need business area not Paul. an fits you, question. scout utilize have. of us. is huge amazing talent. we talent we opportunity a perfectly It's in for Converse that implement your an area we of for Thank and can that for

megabrand. than contribute globally. better have the we what's Nike And Nike, often Converse is a believe we region. that sourcing you global their can an that to brand -- with believes can Usually, talent talent. our regions brand to confined us have it's to the Not -- the geographic We it's partnership to and have get pretty would distribution most say our We for I and expand a opportunity world, we to a of been unique. that had speak. much before that Nike of initiative. They already. an good that excited are Nike and area comfortable we a have business approved, us challenge. being factories We're a the about it's be approved Nike We've limited know. business factories and to into got partnerships have. we making to it, We've approval as We've before. with production the could we and achieve which is process, is rigid Sample-making tested go. We're we and in

We ready the to orders. trading wing standing have write basically partners as

for So us. it's exciting

As inventory. it go relates with Okay can to -- you Neal, the

in great Look, a there better size, aging decent are been are on are but much they've inventories than historically. Yes, our shape. Not our inventory. only

the As licensed we far don't non-licensed see balance out-of-balance as situations. any really between and

the against levels go-forward we the year. positions previous to of going come terms up from lower QX and are inventory for QX, In

kind this future would you expect And in in we're we've inventories quarter fall-off tell QX first like the growth. experienced fact, be expecting up, quarter. sales don't slightly I the that to So and QX aligned of second I with in more

our next Markets. be And Ashley question. KeyBanc question our Capital next One for Owens from will coming of moment

[indiscernible] on is This for Ashley.

and there's guide expected a step XQ. up through XQ, that's the So in results taking

the floors, that very around out have that if mentioned any digging there. see further think, be and good if would Also, mean, Halton a book could you speak to could order you in in I wanting driving more what's you've helpful. position, I the outperformed Champion categories at confidence? Just call

Yes.

up spring we normal compares fourth market in the When the of we're look, as comfortable keep you the the year, with time the very as year, So We've year. quarter week. against is off we're at look to for mind. still really us came as the weakest A the of far quarter. do couple of just to got work previous prior things this

So comfortable relative outsized quarter. with we feel some that to growth

addition, far, so the from growth the the rollout of the really new launch and own we're which our In seen continuing what strong brands. of is with initiatives you've continued

some The The just as assets, of in really Karan great through was amazing. our product with level was that was outsized We've in Donna of growth launched is the marketing campaign success. archives unimaginable. obvious. The a developed

you of I luxury point it it If was is and happy. and classification today, the penetration. past great. at The expansion you the a spoke at high the expansion incredibly Dockers affordable the results looked to would think level, produced Dockers the and Karan happy. an at and retailer it was Donna very price and We're are

brand. week, previewed Karan and European excited they're by of the So onto X stores the last opportunity We excited with we're by floors. department their bringing Donna

retailers low managed the own to Donna us. is or And our high very some well growth at at that as amazing to X we've we fight no the this business maintaining piece come at with managed easy fact of at And it shortly. is size Product we as digits we level. business, done globally We've as and the takes for and with environment the retailer PVH a our into our sustain a high semblance and all as partners reasonable semblance we headwinds between exiting as that retailing effort maintain have So build brand. very Karan The brand exit the brands off is the to licensed time, brand double-digit the exit same single feat. the of believe well. in

Gartner next next of will And for come question moment question. Fargo. One from our Wells Will our

investment long down like think year? think in XQ How about own the And year? it from the SG&A brands And of how looks this will to heavy cycle then sort about second we to about undergoing half how go spend perspective. it campaigns? in SG&A marketing here the continue? that growth the of do a going How Is think you're that and So into that for? to next to invest into

Yes.

the going from have increase SG&A. going the related expenses and pieces then Will, to second falling you that's significantly that into second So When significant for to think be did spend in us quarter year, that million that's to have quarter. We that advertising quarter couple receipts the about is half a the talk we third this of in warehouse base. SG&A inventory terms the the of about third incremental a $XX is

got factors of in half. you've the So both second weighing on X those

I still probably think business in slightly scales level. spend probably terms forward, we're quickly, until growing that going to brand up SG&A it a but go Karan it also we're of to the outsized a Donna the spend investment advertising as to relates greater have

months. We've We're by our is the is first the for marketing year. barely marketing spend business broken huge was Neal percentage stage. Yes. as we've for yet percentage that spend just huge plans internal we right. X exactly a The first the of mega business of that shipped. dollars, in the it's implemented And

SG&A And today. globe the the a marketing we're comes expense dramatic up before These you'll it the But as well The a change. business, spend levels was won't this of line see big down, again, to it. the worth of scale and the licensor. we licensee, dollars As expenses changes, the top a difference. didn't exist marketing as percentage predominantly

we working. that stating expense be added that is and than working. What is control So of today, is there element better could an

frame what versus you're can seeing and U.S. you Just Europe, book, in just order how Just in up more? the maybe the order can shaping your on into squeeze regions one visibility up? both I book is

in elastic is much book North order our So America. more

is inventory in we move everyday inventory not grow or America. supportive it change built North Asia. American proficient on is inventory. composition we yet. for as there And order of deliveries. an to with And comfort business, We're business product. us reorders. to European on Southeast TITAN our We're quick run the in in how as for cycle. growth will We moment, having But AWWG support know built X with Our Europe affords through the the supply plan book We Europe, North ability. partnership We road, not Europe. the that delivery down

significantly So in Europe. it the book is company is America in order more to North the important than

Mauricio will Our UBS. from coming next Serna question of be

Great. raising at A $X.XX, seems the XX% like and to considering? guidance to can couple of it like so we changes should expected the just how with lower the success margin size we think in understand that an beat Karan And there of this expenses of far, quarter questions Or outlook this, is given about on start. you've just I the the to the buybacks? on of to us year? understood update be EPS, Donna midpoint you're that mostly business you for by any the of just Maybe idea seen and sure make that the terms impact should by of QX the $X.XX interest that give

and respond So, question you I'll EPS. on will Neal first to take the

from $X Karan, number. want very eyes, We not currently Donna globally. don't business include number there. say to number. potential, want down, which billion think Karl put does number that licensing in best door conservative And But we're that don't with a expansion double We've market I Same might said with LVMH, said does high I high jointly it I double North We're acquired year, a number with to that DKNY, efforts, -- we our say we I double grow not include had. business soft. had virtually at achieving our it. I you partners, brands a I out So has far of to doing of the in that my too all business want the put DKNY a perfecting launch $X And the environment smaller this when much And would acquired don't We're today, grown and high areas distribution to it's ever fine-tuned business -- in the the put from thing that it had. I $X out the took digits limit. DKNY Lagerfeld but press which every it on is elements side we to conservative this it billion sky company pretty it's has America improve Karl is time. that I strong not the much or in billion X modules believe one a Lagerfeld, Lagerfeld most not we've be assume. And we're and and opportunities. women's Karl just and America tiny record and is low, Europe. there's point, of America. a digit, hate it's company this has digits tell the distributed a teens, earlier, one this in can day, in ever distribution a North best on, I no And is and on has It's with It the North in had in Europe. sales, And to in business. when

that achieved we record So, time. in

And or were But under $X You in billion Calvin side which women's anywhere business. I'm back Klein to those Klein retail built the Klein, the of well billion and to in and between globe. Hilfiger, in possibly brands. we women's guardianship, distribution can North for sales on contributed brand other the G-III's Tommy world. not the that Calvin achievers it We in under largest guidance sure $X.X to go no women's hands it's Calvin recognized. the of virtually America had

of the a having ability and talent pool that now is relationships, So Sky those limit. maybe focusing

roll, Mauricio, as absolutely far EPS you as are the correct.

as The as the the share that forecast, well to previous $X to beat but then savings if Q down pieces second you compare be X savings, about quarter. back was million shares other the And were million. X.X from purchased in it getting our interest filed about repurchases. aside The the shortly, interest we the are will

I And interest guidance the for the Right. think year. is million $XX Is that right? for expenses

That's correct.

last think this like And of Great. distributing you a just brand I just again, of like what terms And run? squeeze give if the to do could rollout that Maybe would to. can in kind one, partners a be from reach long in like you of retail sense how in. time the that like like Converse size us way, the in you dimensionalize then can business distribution the one over

sales. I'm in a in it's reasonable a believe run reach the -- long We time. $XXX not we sure million term, can long in

us earlier, a distributors the the it's by that to is I goods for As team shops. part grow help in that stores, And said or us, engage of department are designated will good it's throughout entire distribution, excited the to is we're global It's world initiative. distribute which areas it's business. sporting that And world. the good a position

Dana Telsey from last will Telsey of Group. be coming Advisory And question our

brands, there from Nice progress. into Is costs channels, look Karan Neal, the the the on for standout anything international to expansion comes the supply that success more you're opportunities regional, 'XX? as chain you what to of U.S.? with we would And each to growth terms mention as times? about in now then, rest 'XX be think anything go Converse, versus do the distribution of of categories, and the of more see brands at the where certainly and you and the licensed through freight seeing the Donna come how in distribution lead of the Morris, and

you, Thank Dana.

in we a well, the is distributing Europe an on will America for leadership of it with is Pepe. AWWG businesses for is integrates us which couple AX important some the our touched that give distribute gives brand license the assets. to of haven't AWWG India. of Pepe, North ability Bull the We're us and us as which of element the kind or the to So, in going of ability team. In as there a unique Red guidance into partnership

American know appeal it has North should the that and for and co-brand great we a it's interest market. -- So,

develop appropriately positioning we're And private to called presence And America initiatives we're that there label Façonnable that we in take on. that specific to developing in establish So, had that going Hackett the are again, to and aggressively huge then that, undertake retailers And here. immersed going of hopefully, then as brands more that well. there's in women's get working in we're are a we apparel. distribution North brand On top we're help men's a on as foothold another to are partnership. that the unique

of fortress entire an amazing targeted for to from, distribution. build assets all there's unique So,

this I'd the world. classification, control of capabilities -- rounded well say could accessories. one and to including the We it, footwear to with allocated and every parts handbags as are is imagine. different our of have now Parts have much it's logical. to production And of of producing all and seem design So, pretty and it's

well of creates for specifically retailers that design broader some our that in We talent a into team initiatives. products We're of we a as unique team sport and have sits as responsibilities China allocating that spectrum have. functions now

it better really today, and So, future think said think as in I great has control earlier, great than G-III's today. ever I don't a have I shape we been is

And on freight in what cost is respect and lead Dana, to your questions with of we the bring times, under contract. majority

certainly, quarter, a However, in there third continue is is certainly some not. have seeing and some bit the that into that is not probably the are extent -- we And the costs higher-level that guidance that quarter fourth. third to freight expecting and expect, it into built we our

had as times, lead was inventory far we mention received. not As did that I that

it as certainly of at built feel on fine-tuned delay our again, into not little significant, We we are but bit. the we've prospective it's margins can amount us And average, seeing that well. that impact like end quarter, overall the of the on small a a guidance

Okay.

season, Have to for to you in fall you today. all we your a and look Thank speaking So, forward December. thank interest you. great

today's participating. conference call. for concludes you this Thank And

You disconnect. may now